IGG Inc Interim Results Announcement for the Six Months Ended 30 June 2024

IGG Inc. achieved a significant financial turnaround during the first half of 2024, reporting a net profit of HK$330.9 million compared to a loss of HK$359.8 million in the same period of 2023. This recovery was underpinned by a 9% year-on-year revenue increase to HK$2.74 billion, driven by the robust performance of core mobile titles such as Lords Mobile, Doomsday: Last Survivors, and Viking Rise, alongside growth in the company’s mobile application business. By optimizing operating, marketing, and research and development expenses, the company successfully improved its gross profit by 19% and strengthened its liquidity, ending the period with HK$1.94 billion in cash and cash equivalents. Consequently, the board declared an interim dividend of HK8.5 cents per share, signaling a return to shareholder distributions.

The company maintains a strategic focus on profit-driven growth, leveraging artificial intelligence to enhance operational efficiency and cost management. Its capital allocation remains disciplined, with ongoing investments in mobile internet and gaming sectors and the construction of a self-use office facility in Fuzhou. Governance and talent retention are supported by active share award and incentive schemes, which are designed to align the interests of directors and employees with long-term corporate performance. As of mid-2024, the company’s leadership maintains a collective 24.28% interest, ensuring stability in management direction.

Operational presence in China continues to rely on structured contracts with domestic entities to navigate foreign investment restrictions. While these arrangements account for a small portion of total revenue and assets, the company acknowledges ongoing regulatory ambiguity regarding their classification under the Foreign Investment Law. Despite these potential risks, the company maintains that its exposure is limited and has established contingency plans to ensure business continuity. Overall, the results reflect a successful pivot toward sustainable profitability and operational resilience within the global mobile gaming market.